Indonesia's Coal Export Drop 4 MT

During the first half of 2009, Indonesia's coal export realization was estimated to be 4 MT lower than the same period last year. The above was mentioned by Bob Kamandanu, the Chairman of Indonesian Coal Mining Association (ICMA), during a blood drive event in the Ministry of Energy and Mineral Resources Office, on 19 August 2009.

Kamandanu claimed that the decline has nothing to do with the performance of coal mining sector. Indonesia's coal export decline was driven mostly by the impact of global crisis, which has weakened the demand for coal by importers in the last six month. Nevertheless, he expected that the export volume would increase until the year end, following the stronger market demand.

"The export value decline was due to the crisis that caused them (buyers) to use their right to cut 10% of the export quota set in the contract. Later on, they could pick it up again," he said.

"Usually, buyers are given with the privilege to reduce up to 10% of the purchase stated in the contract," Kamandanu further explained.

Although the export quota was declining, the domestic consumption of coal has increased 5 MT during the same period. It would mean that the overall sales of coal have indicated a positive progress, indeed.

Kamandanu also estimated that the total sum of exports and domestic sales could reach 260 MT by the end of this year.